The cost of directors and officers insurance depends on your tech business’s level of risk, as well as your policy limit and deductible.
Tech businesses pay a median premium of $451 per month or $5,408 per year for directors and officers insurance. The cost of D&O insurance depends on a number of factors, including the size of your business, the makeup of your board of directors, and your prior claims history.
Among TechInsurance customers who purchase directors and officers insurance, the median policy limit is $2 million and the median deductible is $10,000. This means that policy priced at the median would cover up to $2 million in claims per year, less the $10,000 deductible.
Policies with lower limits will cost less. You can also save money by paying a higher deductible. However, high deductible options may cost more in the long run.
Bundle it with employment practices liability insurance (EPLI). Some insurance providers allow tech companies to bundle D&O insurance with EPLI. This package often costs less than purchasing each policy separately.
Pay your annual premium up front. When you purchase a policy, you can pay your premium in either monthly or annual installments. The annual premium often costs less than paying month by month.
Risk management. Technology companies with no previous directors and officers claims on their insurance will have lower premiums. Your business can avoid claims by taking steps to manage risks, such as:
Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.
View our small business insurance cost overview or find out how much you can expect to pay for common types of business insurance.